{"id":334,"date":"2019-01-29T12:58:35","date_gmt":"2019-01-29T09:28:35","guid":{"rendered":"http:\/\/imansoltani.ir\/main\/?p=334"},"modified":"2019-01-29T12:58:35","modified_gmt":"2019-01-29T09:28:35","slug":"iran-market-can-be-your-golden-dream-for-business-or-easily-could-be-your-worst-nightmare","status":"publish","type":"post","link":"http:\/\/imansoltani.ir\/main\/2019\/01\/29\/iran-market-can-be-your-golden-dream-for-business-or-easily-could-be-your-worst-nightmare\/","title":{"rendered":"IRAN Market &#8211; Can be your Golden dream for business or easily could be your Worst Nightmare!"},"content":{"rendered":"\n<p>Iran is the second \nlargest economy in the Middle East and North Africa (MENA) region after \nSaudi Arabia according to World bank which makes Iran second high value \nmarket in the region&nbsp; with 78M population is larger than any other \ncountry in the region except for Egypt. 71 percent are living in urban \nareas, and Tehran and its satellite towns are home to almost 18 million \ninhabitants.Most of the population is young, with 60 percent aged under \n30. Iran has the biggest group of Internet users in the Middle East \n&amp; education is an important value in Iran, as seen by a big jump in \nthe number of people pursuing higher studies at university or in \nreligious institutions. also men and women are split almost equally \n50-50 in this category, underlining the growing number of educated \nIranian women.<\/p>\n\n\n\n<p>During the past few years, there has been a growing trend on luxury \ngood consumption among Iranian consumers &amp; the results of recent \nmarket study indicate that all three factors, consumer perceived value, \nsensitivity to social norms and need for uniqueness, influence consumer \nintention to buy luxury goods. In addition, consumer knowledge is a \nmediator factor between need for uniqueness and purchase intention as \nsuch you can see 60K monthly sales for IPhones, first market for Porsche\n in the region and high ASP.<\/p>\n\n\n\n<p><strong>Also There is absolutely no strong -wise Local brands!<\/strong><\/p>\n\n\n\n<p>&nbsp;It looks promising hence Iran becomes MENA`s El Dorado so every one \nis interested and wants to play and have pieces of this delicious pie!<\/p>\n\n\n\n<p>So as a company what do you think?&nbsp;&nbsp; Easy money? lets go and take it?<\/p>\n\n\n\n<p>As an expert in Iran market for several years working for \nMultinational companies &amp; local distributors, I am telling you don`t\n be fooled as this can be El Dorado mirage.<\/p>\n\n\n\n<p>Beware that this Golden dream can be your <strong>Worst Nightmare<\/strong> as well.<\/p>\n\n\n\n<p>To establish healthy fruitful Biz &amp; benefit from it in Iran you \nhave to be prepared and wear your toughest armor. Believe me I don&#8217;t \nwant to be negative . All I am trying to say is that it is not as easy \nas it looks.<\/p>\n\n\n\n<p>Iran entry for your Biz can end up to be your Golden Goose in the \nregion if only you play your cards really smart &amp; be PREPARED.<\/p>\n\n\n\n<p>Always keep in mind that IRAN is really unique market which you can \nnever see such a market in the region.&nbsp; of course everyone is saying \ntheir country is different and there is always Pros &amp; Cons for each \nmarket but I am telling you Iran is really UNIQUE and Different, nothing\n like you have ever experienced before unless you worked here and I give\n you some insights why it is so unique:<\/p>\n\n\n\n<ul><li>Currency Fluctuation &#8211;&nbsp; Expect huge and unexpected Fluctuation. \nKeep in mind it can be up to 6% which can easily destroy your estimated \nmargin especially for products which are selling in volume and small \nmargin.<\/li><\/ul>\n\n\n\n<p>USD Exchange Fluctuation over a Week<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/media.licdn.com\/dms\/image\/C4D12AQHp08XbhIY2VQ\/article-inline_image-shrink_1000_1488\/0?e=1554336000&amp;v=beta&amp;t=MI5dq_KINE0hLWXflDgkYuZkm-U1Zd6tycq_Jr1MBew\" alt=\"\"\/><\/figure>\n\n\n\n<ul><li><strong>Exchange rate :<\/strong> There are two rates, Central Bank \n&amp; Open Market which is 29900 Vs. 35750 and keep in mind that not \nevery one has an access to Central bank rate.&nbsp; Imagine your competition \nhas an access to Central bank rate and you get your dollars from open \nmarket! You will be facing 17% price different.<\/li><li><strong>Interest rate :<\/strong>&nbsp; Again there are two rates and again it is Central bank rate and open market which is 24% Vs. 36% per year.<\/li><li><strong>Inflation rate : <\/strong>Iran&nbsp; has one of the highest inflation rate in the world.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/media.licdn.com\/dms\/image\/C4E12AQGTOwq1QpILoQ\/article-inline_image-shrink_400_744\/0?e=1554336000&amp;v=beta&amp;t=a2LPZ-ZaIrFp93g9iRTI8NtX8yYEJfZkZJSLO1MKywc\" alt=\"\"\/><\/figure>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/media.licdn.com\/dms\/image\/C4E12AQFwVzJPN-jJxQ\/article-inline_image-shrink_1000_1488\/0?e=1554336000&amp;v=beta&amp;t=-yVujrH_ffbIcpLJHqnYuj6Nb2N87rvtKPv-_1UcO-k\" alt=\"\"\/><\/figure>\n\n\n\n<ul><li><strong>Rules, Tariffs &amp; regulation<\/strong> can be changed \nwith out prior notice and even over the night!&nbsp; for example custom duty \n&amp; cost of importation&nbsp; for Mobile changed from 7% to 65% and again \nto 35% and 22%.&nbsp; don&#8217;t get me started with regulation and required \nlicense!<\/li><li><strong>VAT<\/strong> is applicable for whatever your are importing \nvia official channel and custom but sometimes you can not add it to your\n landed cost as there might be some competitors that pulled some strings\n and dodged that VAT!<\/li><li><strong>Smugglers and unofficial routes:<\/strong> Some times you \ncan see over 80% smuggled stock in certain products which will be huge \nissue due to high custom duty &amp; Tariffs. It makes Iran the Heaven on\n earth for smugglers and please don&#8217;t expect government support at all!<\/li><li><strong>Iranian Consumer behavior :<\/strong> There is no room for \nmaking any mistakes. if you make mistake you might kill your brand and \nthe recovery is almost impossible. for Example ZTE, Alcatel, Panasonic, \nSony Mobile &amp; LG Mobile Failure &amp; also on the other hand, \nSamsung &amp; Huawei huge success. These are examples for Consumer \nElectronic segment. There are other examples for BAT,ATI,JTI, Nestle, \nDanone, Bel group for FMGC &amp; Tobacco or for Telecom side there are \nMTN, Talia &amp; Rightel stories. I can go on and on to name the brands.\n Always remember : <strong>IF YOU FAIL, THERE IS A SMALL CHANCE OF RECOVERY<\/strong>.&nbsp; I will share the stories &amp;&nbsp; get into details later.<\/li><li><strong>Highly competitive&nbsp; vast market with different cultures &amp; consumption behaviors : <\/strong>Just\n have a look at below map which is showing Iran ethno religious \ndistribution. There are Arabs,Turks,Kurds &amp;&#8230; and of course you \nknow every one has their own different culture &amp; traditions.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/media.licdn.com\/dms\/image\/C4D12AQHlU9-fR9ZGhA\/article-inline_image-shrink_1000_1488\/0?e=1554336000&amp;v=beta&amp;t=Fo9ez5Zkqzbsup4aiy8iLpWOiylibXkErazaelFszpE\" alt=\"\"\/><\/figure>\n\n\n\n<p>Now what do you think?&nbsp; Scary right? is not it?<\/p>\n\n\n\n<p>So you may think that`s&nbsp; it, it does not worth it, there are too much risks.<\/p>\n\n\n\n<p>But if you ask me what is your advise? is it worth to invest?<\/p>\n\n\n\n<p><strong>My answer is : <\/strong><\/p>\n\n\n\n<p><strong>100% positive!!! it is second high value market in MENA!&nbsp; Are\n you kidding me? of course you must plan for IRAN market entry and trust\n me it gonna worth every penny you spend. <\/strong><\/p>\n\n\n\n<p>You might say this guy is crazy,all he has been saying was negative \n&amp; was complaining about IRAN market but make no mistake my friends. \nif you play your cards right, if you plan properly, if you adopt your \nself to the Iran`s T&amp;Cs you will hit the Jackpot and IRAN can be \nyour GOLDEN GOOSE!<\/p>\n\n\n\n<p>Iman Soltani<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Iran is the second largest economy in the Middle East and North Africa (MENA) region after Saudi Arabia according to World bank which makes Iran second high value market in the region&nbsp; with 78M population is larger than any other country in the region except for Egypt. 71 percent are living in urban areas, and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":335,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/posts\/334"}],"collection":[{"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/comments?post=334"}],"version-history":[{"count":1,"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/posts\/334\/revisions"}],"predecessor-version":[{"id":336,"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/posts\/334\/revisions\/336"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/media\/335"}],"wp:attachment":[{"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/media?parent=334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/categories?post=334"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/tags?post=334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}